Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005) (Cth)

Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005)

I, NICK MINCHIN, Minister for Finance and Administration, make these Orders under subsection 48 (1) of the Commonwealth Authorities and Companies Act 1997.
Dated 15 February 2006
Nick Minchin
Minister for Finance and Administration
1 Name of Orders

These Orders are the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005).

Notes:

·These Orders are in relation to preparation of financial statements.

·Other matters relating to Commonwealth Authorities are dealt with in other Orders made by the Minister under subsection 48 (1) of the Commonwealth Authorities and Companies Act 1997.

2 Commencement

These Orders commence on 1 July 2005.

3 Financial statements for reporting periods ending on or after 1 July 2005

For sub item 2 (1) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997, Schedule 1 sets out the requirements for the preparation of financial statements for the reporting periods ending on or after 1 July 2005.

Note:

Schedule 1 is identical to Schedule 1 to the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005). The purpose of having identical requirements is to achieve uniformity in financial reporting across the Australian Government public sector which will assist in the preparation of annual financial statements in relation to the Australian Government by the Finance Minister under section 55 of the Financial Management and Accountability Act 1997. Accordingly, certain terms, requirements and references contained in Schedule 1 to these Orders apply to Commonwealth Authorities and not to Agencies while other terms, requirements and references apply to Agencies and not to Commonwealth Authorities.

Schedule 1 Requirements for the Preparation of the Financial Statements for the reporting periods ending on or after 1 July 2005.

Schedule 1: Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only)

Definition of Terms

CHAPTER 1 APPLICATION AND PRESENTATION

1A........... Commencement

1B........... Application

1C........... Certification

1D........... Exemptions

1E........... Rounding Off

1F........... Simplified Reporting

CHAPTER 2 APPROPRIATIONS AND OUTCOMES REPORTING

2A........... Recognition of Appropriations

2B........... Departmental and Administered Items

2C........... Disclosures of Appropriations

2D........... Reporting of Outcomes and Outputs

2E........... Special Accounts

CHAPTER 3 ASSETS

3A........... Non-Financial Assets (previously Internal Use Software/Non-Current Assets/Impairment of Non-Financial Assets/Analysis of Property, Plant and Equipment and Intangibles)

3B........... Restricted Assets

3C........... Assets Held in Trust

3D........... Heritage And Cultural Assets

CHAPTER 4 LIABILITIES

4A........... Contingent Liabilities and Contingent Assets

4B........... Commitments

4C........... Employee Entitlements (New Policy)

CHAPTER 5 EQUITY

5A........... Restructure

5B........... Return of Funds (previously Analysis of Equity)

CHAPTER 6 ADMINISTERED ITEMS

6A........... Administered Reporting

6B........... Administered Investments

CHAPTER 7 SPECIFIC NOTE DISCLOSURES

7A........... Compensation and Debt Relief in Special Circumstances

7B........... Director/Executive Remuneration

7C........... Remuneration of Auditors

7D........... Investment of Surplus Money by Authorities (New Policy)

CHAPTER 8

8A........... Financial Instruments (New Policy)

APPENDIX A - Forms of Financial Statements, Schedules and Notes:

Section 1: For-Profit Reporting Entities

Section 2: Not-For-Profit Reporting Entities

Section 3: Administered Reporting

Definition of Terms

AAS

Australian Accounting Standards

AASB
Australian Accounting Standards Board

Active Market
A market where all the following conditions exist:

(a)               the items traded within the market are homogenous;

(b)               willing buyers and sellers can normally be found at any time; and

(c)               the prices are available to the public.

           (AASB 138 para. 8)

Administrative Arrangements Orders (AAOs)

The functions and activities of the Government are administered in accordance with AAOs, issued from time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio Minister.

AEIFRS
Australian Equivalents to International Financial Reporting Standards

Agency
An Agency is as defined in section 5 of the Financial Management and Accountability Act 1997.

Amortisation
The systematic allocation of the depreciable amount of an intangible asset over its useful life.
(AASB 138 para. 8)

Resources Received Free of Charge
Includes any economic benefits which are received for no or nominal consideration.

Australian Government
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.

Authority

A Commonwealth authority as defined in section 7 of the Commonwealth Authorities and Companies Act 1997.

Business Operations
Activity or activities within an Agency that have been determined to be a Business Operation pursuant to 6.2.1 of the Financial Management and Accountability Orders 2005. They generally produce goods and services to persons or other entities for market prices and are not ‘primarily’ funded by appropriations.

Carrying Amount
The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses.
(AASB 116 para. 6)

Cash-Generating Unit
The smallest identifiable group of assets that generates cash inflows that is largely independent of the cash inflows from other assets or groups of assets.
(AASB 5 Appendix A)

Charter of Budget Honesty
The Charter of Budget Honesty Act 1998 provides a legislative framework for the conduct and reporting of fiscal policy. Broadly the Charter (Schedule 1 of the Act) requires the Government’s fiscal strategy to be based on the principles of sound fiscal management. In addition, the Secretaries of the Department of Finance and Administration and the Department of the Treasury are to publicly release a pre-election fiscal and economic outlook report if a general election is called and cost any publicly announced polices submitted by the Government or Opposition if so requested.

Commonwealth
The legal entity of the Commonwealth of Australia, created by the Australian Constitution.

Consolidated Financial Statements (CFS)
The Australian Government’s Consolidated Financial Statements (CFS) is the annual, end-of-year financial report prepared under section 55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS31 Financial Reporting by Governments. The CFS shows the consolidated results for the Australian Government includes consolidated results for all controlled entities as well as disaggregated information on the various sectors of government (general government, public non-financial corporations and public financial corporations).

Contingent Assets
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Contingent Liability
(a)   a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or

(b)   a present obligation that arises from past events but is not recognised because:

(i)    it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

(ii)         the amount of the obligation cannot be measured with sufficient reliability.

(AASB 137 para. 10)

Cost
As defined in AASB 116, Property, Plant and Equipment, and amounts deemed as cost as permitted by AASB 1, First-time Adoption of Australian Equivalents to International Financial Reporting Standards, and other relevant standards.

Cost Recoveries
All costs recovered by the Australian Government for provision of goods and services to the private and non-government sectors.
Cost recoveries do not include: intra-government charging, government business enterprises, competitively neutral commercial arrangements, taxes, loans, asset sales or other property related incomes, fines and penalties, one-off specific policy measures, industry-government partnerships or statutory marketing levies, fees and charges by courts and tribunals.

Costs to sell
The incremental costs directly attributable to the disposal of an asset (or disposal group) excluding finance costs and income tax expense.
(AASB 5 Appendix A)

Depreciable Amount

The cost of an asset, or other amount substituted for cost, less its residual value
(AASB 116 para. 6)

Depreciated Replacement Cost

The current cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.

(AASB 136 para. 6)

Draw Down
An authorised transmission (draw down) of funds from the Official Public Account (OPA) to either the respective agency’s Official Administered Payments account or Official Departmental account.

Entity
As described in Clause 1B.1 of this document.

Entity Assets
In the Australian Government context, assets that are controlled by an entity, rather than merely administered on behalf of Government.

Fair Value
The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.
(AASB 116 para. 6)

FinanceBriefs These provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance.

Finance Lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.
(AASB 117 para. 4)

Financial Instrument
Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(AASB 132 para. 11)

Financial Statements
Include:

(a)        the statements, schedules and notes required by these Orders; and

(b)        any other certificates, reports and notes (other than the auditor’s report and annual report) attached to or intended to be read with the statements and notes required by (a);

prepared in relation to:

- the Agency or Authority; and

- where the Agency or Authority is a parent entity—the economic entity comprising the Agency or Authority and its subsidiaries.

For-Profit Entities
Refer to Appendix A of this document.

General Government Sector (GGS)

The GGS is a Government Finance Statistics (GFS) concept for entities that fulfil the functions of government as their primary activity. The primary function of this sector is to provide public services, which are mainly non-market in nature, and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies.

Government Business Enterprises (GBE)
A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Act 1997.

Grants

Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. (AASB 120 para.3).

Heritage Buildings
Heritage buildings are those buildings, monuments or structures that are (or are likely to become) symbolic of government, public activities, historical significance or cultural association (eg. Australian Government buildings listed on the National Trust.)

Impairment Loss
The amount by which the carrying amount of an asset exceeds its recoverable amount.
(AASB 116 para. 6)

Intangible Asset
An identifiable non-monetary asset without physical substance.
(AASB 138 para. 8)

Market Buying Price

The amount for which an asset with similar service potential could be bought by a knowledgeable, willing buyer from a knowledgeable, willing seller in an arms-length transaction at current prices plus the buyer’s transaction costs. This equates to current market value plus the buyer’s transaction costs.

Market Selling Price
The price that a willing seller would accept from a knowledgeable, willing buyer for an asset in an arms-length transaction at current prices. This does not include transaction costs.

Net Selling Price
Refer to Appendix B of this document.

Not-For-Profit Entities
An entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent and each of the entities that it controls.
(AASB 116 para. AUS 6.1)

Operating Lease
A lease other than a finance lease.
(AASB 117 para. 4)

Personal Benefit Payments
Current transfers for the benefit of individuals or households (for example, child care and family tax benefits) that do not require any economic benefit to flow back to government.

Preservation
Work performed to maintain an item in its existing state.

Progressive Revaluation
Revaluation of assets within a class, conducted in a systematic manner over a number of years.

Recoverable Amount
Means the higher of an asset’s fair value less costs to sell and its value in use.
(AASB 5 Appendix A)

Reproduction Cost
The cost of replicating an existing asset.

Reserves

Include:

a)          amounts set aside out of profits; or

b)          other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on revaluation of assets).

Revaluation
The act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses.

Surplus assets
Assets that are held for disposal, being those assets for which:

a)          an entity has entered into a binding sale agreement; or

b)          an entity’s management or governing body has approved a formal plan to dispose of the assets.

(AASB 116 para. 6)

Useful Life
a)         the period over which an asset is expected to be available for use by the entity; or

b)         the number of production or similar units that is expected to be obtained from the asset by the entity.

(AASB 116 para. 6)

Value in Use
The present value of the future cash flows expected to be derived from an asset or cash-generating unit.

In respect of not-for-profit entities, value in use is depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits.

(AASB 136 para. 16)

CHAPTER 1 APPLICATION AND PRESENTATION

1A Commencement

Policy
1A.1 Subject to Clause 1A.2 of this Policy, the requirements of this Schedule apply to financial statements prepared for reporting periods ending on or after 1 July 2005.

1A.2 For entities that cease to exist on or after 1 July 2005, the financial reporting requirements set out in this Schedule shall apply.

1B Application

Policy
1B.1 Financial statements must be prepared for the following entities:

(a) each Agency and Authority;

(b) the economic entity, comprising the Agency or Authority and its subsidiaries; and

(c) each activity or activities of an Agency which is/are determined to be a Business Operation.

1B.2 The financial statements of each entity must be presented in the following order:

(a)statement required by Clause 1C.2 or 1C.3 of this Schedule;

(b)primary statements (Income Statement, Balance Sheet, Cash Flow Statement and Statement of Changes in Equity or Statement of Recognised Income and Expenditure); and

(c)Schedules and Notes to the Financial Statements.

1B.3 The financial statements of each entity must:

(a)include

(i)the primary statements, schedules and notes in the form prescribed in Appendix A of this Schedule; and

(ii)all note disclosures specified by Policies in this Schedule; and

(b)comply with:

(i) all applicable requirements of this Schedule;

(ii)applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and

(iii)interpretations issued by the Urgent Issues Group (UIG) that apply for the reporting period; and

(c)have regard to:

(i) the Explanatory Notes to this Schedule;

(ii) the Statements of Accounting Concepts (SACs);

(iii) the AASB Framework for the Preparation and Presentation of Financial Statements; and

(iv)Estimates Memorandums, FinanceBriefs, Finance Circulars, Financial Management Guidances and other guidance/policies issued by the Department of Finance and Administration; and

(d)be presented in the English language and Australian dollars.

1B.4 Where competitive neutrality (CN) payments are required under the Commonwealth Competitive Neutrality Policy Statement - June 1996, entities must explain and disclose the amount of each of the following:

CN - Regulatory Neutrality Expense
CN - Debt Neutrality Expense
CN - State Tax Equivalent Expense
CN - Commonwealth Tax Equivalent Expense
CN - Other Expense

1B.5 Unless specifically otherwise stated in this Schedule or an accounting standard, comparatives must be disclosed in the financial statements and notes.

1B.6 If an entity wishes to early adopt a new accounting standard other than permitted or required by this schedule, it must seek approval from the Chief Executive of the Department of Finance and Administration due to the potential effect on the preparation of the Consolidated Financial Statements.

1B.7 The requirements of this Schedule apply where information resulting from their application is material. Information is material if its omission, misstatement or non-disclosure has the potential, individually or collectively, to:

(a) influence the economic decisions of users taken on the basis of the financial report; or

(b)affect the discharge of accountability by management or governing body of the entity.

1C Certification

Policy
1C.1 The signed auditor’s report on the financial statements must be attached to the financial statements.

1C.2 Each economic entity, comprising an Authority’s and its subsidiaries’ financial statements, must present a statement signed by the Chair of the Board (or equivalent) and Chief Executive Officer stating:

(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;

(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;

(c) for entities other than financial institutions which apply AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions whether, in their opinion, there are, when the statement is made, reasonable grounds to believe that the entity will be able to pay its debts as and when they fall due;

(d) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements.

(e) that the statement has been made in accordance with a resolution of the Directors; and

(f) the date on which the statement is made.

1C.3 Each other entity required to prepare financial statements, must include a statement signed by the Chief Executive stating:

(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;

(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;

(c) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements; and

(d) the date on which the statement is made.

1D Exemptions

Policy
1D.1 The Finance Minister may grant a written exemption to the Chief Executive of an Agency or Directors of an Authority, as the case may be, from any specified requirements of this Schedule.

1D.2 An exemption granted under Clause 1D.1 of this Policy may be granted subject to conditions, including a requirement for alternative forms of disclosure.

1D.3 The Chief Executive or Directors must disclose the particulars of any exemption granted under this Policy in the notes to the financial statements.

1E Rounding Off

Policy
1E.1 Unless otherwise provided in this schedule, amounts in the financial statements may be rounded off as follows:

(a) where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $10 million — it may round an amount to the nearest $1,000, unless that amount is $500 or less, in which case the amount should be rounded to zero; and

(b)where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $1 billion — it may round an amount to the nearest $1 million, unless that amount is $500,000 or less, in which case the amount should be rounded to zero.

1E.2 Rounding off must be applied consistently throughout the financial statements.

1E.3 This Policy applies to both entity and administered items.

1F Simplified Reporting

Policy
1F.1 Entities may adopt the simplified reporting provisions set out in this Policy.

Presentation of primary financial statements

1F.2 Where an entity’s net surplus/deficit is solely attributable to the Australian Government in both the current and immediately preceding reporting periods, the Income Statement line items ‘Net Surplus or Deficit attributable to the Australian Government’ or ‘Net Surplus or Deficit attributable to minority interest’ may be omitted.

1F.3 Where an amount is disclosed on the face of a primary statement, it is not necessary to repeat this information in the notes to the financial statements, unless this is required in conjunction with the presentation of other information.

Schedules

1F.4 Where there are no commitments or contingencies in either the current or the immediately preceding reporting periods, it is not necessary to include a Schedule for such items. Instead, the fact that there are no such items should be disclosed in the notes to the financial statements.

Notes to the financial statements

1F.5 Where the fair value of each class of an entity’s financial assets and financial liabilities equals its carrying amount in both the current and immediately preceding reporting periods entities may state this fact, instead of disclosing these amounts in accordance with paragraph 86 of AASB 132 Financial Instruments: Presentation and Disclosure.

1F.6In relation to Policy 7A of this Schedule, an entity that has no transactions in either the current reporting or any comparative period, should disclose by way of note that there were no such transactions or balances.

1F.7 This Policy applies to both entity and administered items.

CHAPTER 2 APPROPRIATIONS AND OUTCOMES REPORTING

2A Recognition of Appropriations

Policy
Appropriations

2A.1 The earliest point of recognition and/or disclosure for appropriations is as follows:

(a) for Appropriation Acts (No. 1) and (No. 2) and Appropriation (Parliamentary Departments) Act (No. 1) — the commencement of the financial period (e.g. 1 July);

(b)for departmental special appropriations — when the obligation for which the special appropriation exists is incurred;

(c)for administered special appropriations – when appropriation funds are transferred into an agency’s administered bank account.

(d)for all other Appropriation Acts (except loan appropriations)— the date of royal assent;

(e)for the increased appropriation provided by amounts received that are eligible section 31 receipts — as the revenue is earned; and

(f)for other amounts determined by the Finance Minister (or delegate) or an Agency Minister or Presiding Officer under Part 3 Additions to basic appropriations of Appropriation Acts — the date of the determination or the date applicable as stated in the determination.

2A.2 For Authorities, all moneys received from the Commonwealth, excluding grants and non-operating annual appropriations are to be recognised as revenue. Additional disclosure in accordance with this Policy and Policy 2C of this Schedule is required as if they drew the funds from the Consolidated Revenue Fund.

Departmental annual appropriations

- Departmental outputs

2A.3 For departmental output appropriations, recognise the full amount appropriated for departmental outputs as revenue of the year of appropriation, adjusted by all applicable current year formal additions and reductions listed at Clause 2A.13 of this Policy.

- Non-operating appropriations

2A.4 Subject to Clause 2A.8, departmental non-operating appropriations must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with Clause 2A.13 of this Policy.

- Equity injections and returns

2A.5 Departmental equity injection appropriations must be recognised as a contribution by owners, increasing ‘Contributed Equity’ from the commencement of the period to which the appropriation applies, irrespective of when drawn down. Equity injections for appropriations in Acts passed after the commencement of the period for which the appropriation applies will be recognised from the date of royal assent.

2A.6 Departmental equity returns must be recognised as a return of capital in accordance with Clause 5B.5 of this Schedule, and not as a reduction in, or refund of, revenue. This will directly reduce ‘contributed equity’ from the time the return of capital is paid.

2A.7 Departmental equity injections or returns can include restructuring agreements resulting from a transfer of function (refer to Clause 5A.2 of this Schedule) and determinations of reductions in accordance with the Appropriations Acts (refer to Clause 5B.6 of this Schedule).

- Loan appropriations

2A.8 Departmental loan appropriations must be recognised as increases in borrowings, when the appropriation is drawn down. They are not revenue.

- Undrawn appropriations - purchasing/workload agreements

2A.9 Where an entity has undrawn appropriation which is required to be returned to Government under a purchasing, workload or other agreement, the entity must recognise the undrawn amount as a liability and not as a reduction in appropriation revenue.

-Previous years’ outputs

2A.10 Where additional work is requested by government with funding to follow in the subsequent period, as ‘previous years outputs’, the agency may book a revenue and an appropriation receivable so long as the transaction is appropriately evidenced. Evidence will include at a minimum, written ministerial agreement. The subsequent appropriation for prior years’ outputs will reduce the appropriation receivable.

Appropriations – adjustments to current year appropriation

2A.11 Formal additions or reductions to recognition of departmental appropriations occur when an entity has gained or lost the capacity to control the appropriation. Formal additions or reductions necessitate adjustments to recognition and/or disclosure of appropriations to the extent they have not already resulted in adjustments in previous years.

2A.12 To be a formal addition or reduction, the gain or loss of control must be evidenced in writing from the appropriate authority as outlined in Clause 2A.13 of this Policy.

2A.13 Departmental appropriations may only be adjusted, by formal additions or reductions, in the current year, for the current year, which are as follows:

(a)appropriations under section 31 of the FMA Act;

(b)transfers of appropriation under section 32 of the FMA Act;

(c)other amounts (excluding section 31) determined by the Finance Minister (or delegate) or an Agency Minister or Presiding Officer under Part 3 Additions to basic appropriations of Appropriation Acts;

(d)determination of reductions in accordance with the Appropriation Acts;

(e)adjustments as stipulated by any agreement that provides for additional revenue for over delivery, such as purchasing, workload or other agreements;

(f)adjustments made as a result of a decision by the Government, for an entity to provide additional outputs during the current financial period that will be provided for in the subsequent financial period; and/or

(g)all other reductions (including savings approved during the year), made as a consequence of a policy of the Government, evidenced by a decision of the Cabinet or the Prime Minister.

2A.14 The agreements referred to in Sub-clause 2A.13(e) of this Policy must:
(a) set out one or more quantifiable deliverable(s) and/or a specific amount of appropriation relating to each; and

(b) be approved by, or arise from, Ministerial or cabinet decisions prior to the funding being given.

Administered Annual Appropriations

2A.15 Administered appropriations must be disclosed when drawn down in the ‘Administered Reconciliation Table’ (in accordance with Clause 6A.3 of this Schedule), and not as revenue.

-State Payment Items

2A.16 The funding for State payment items (Specific Purpose Payments to the States and Territories) shall be reported as administered appropriations.

Special Appropriations – limited and unlimited

2A.17 Agencies must report the amounts appropriated in the current year, under limited and unlimited special appropriations for which they are responsible as follows:

(a) for departmental special appropriations, recognise and disclose the amount appropriated as revenue when the obligation for which the special appropriation exists is incurred; and

(b) for administered special appropriations, disclose in the ‘Administered Reconciliation Table’ the amount appropriated when it is transferred into an agency’s administered bank account.

2A.18 Where an Agency has paid money out of the CRF from a special appropriation that is not the ‘responsible entity’:

(a) the ‘responsible entity’ must disclose the name of the entity to which it has given authority to act as its agent and apply the reporting requirements outlined at Clause 2A.19 of this Policy; and

(b) the entity that has paid money out of the CRF against a special appropriation must disclose the name of the ‘responsible entity’ and apply the reporting requirements outlined at Clause 2A.20 of this Policy.

2A.19 The ‘responsible entity’ is to include the relevant details of its special appropriations in the following elements of its financial statements:

(a)For administered special appropriations:

(i)administered expenses as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;

(ii)administered assets and liabilities as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;

(iii)administered cash flows as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;

(iv)administered reconciliation table in accordance with Clause 6A.3 of this Schedule;

(v)appropriation Tables C, D, E and F of Policy 2C of this Schedule (as appropriate); and

(vi)where applicable, full disclosure of the relationship between the ‘responsible entity’ and the entity paying moneys from the CRF.

(b) For departmental special appropriations:

(i)departmental revenues and expenses as part of the Income Statement in accordance with Appendix A of this Schedule;

(ii)departmental assets and liabilities as part of the Balance Sheet in accordance with Appendix A of this Schedule;

(iii)departmental cash flows as part of the Cash Flow Statement in accordance with Appendix A of this Schedule;

(iv)appropriation Tables C, D, E and F of Policy 2C of this Schedule (as appropriate); and

(v)where applicable, full disclosure of the relationship between the ‘responsible entity’ and the entity paying moneys from the CRF.

2A.20 An Agency paying moneys out of the CRF on behalf of a ‘responsible entity’ against a special appropriation must include relevant details of the special appropriation as a separate note in its financial statements as follows:

(a) full disclosure of the relationship between the entity paying from the CRF and each ‘responsible entity’; and

(b) for each special appropriation, the amount of receipts, subsequent payments from the CRF and the resulting balance of any moneys held using Table G of Policy 2C of this Schedule.

2A.21 Where an agent pays money out of the CRF on behalf of the ‘responsible agency’, the ‘responsible agency’ must ensure that systems and processes are in place to enable appropriate reporting of the special appropriation.

2B Departmental and Administered Items

Policy
2B.1 This Policy applies when determining the classification of an item as ‘departmental’ or ‘administered’ for the purpose of preparing accrual-based financial statements (i.e. for all reporting other than in the appropriation and Special Account disclosures notes required by Policies 2C and 2E of this Schedule).

2B.2 Subject to a reclassification by the Finance Minister of an item under Clause 2B.6 of this Policy, an amount explicitly described in an Act (including an annual Appropriation Act) as being ‘departmental’ or ‘administered’, is classified, for the purposes of accrual reporting in the financial statements as described in the Act.

2B.3 All amounts appropriated as State payment items (Specific Payments to the States and Territories) in the annual Appropriation Acts are to be classified as administered items for accrual reporting purposes in the financial statements.

2B.4 Other than as provided in Clauses 2B.2 and 2B.3 of this Policy, all other assets, liabilities, income, expenses, cash flows, contingencies and commitments will be classified as ‘departmental’ or ‘administered’ according to the following rules:

(a)‘Departmental items’ are those which the entity controls that are applied to the production of the entity’s own outputs; [1] and
[1] Australian Accounting Standard AAS 29 ‘Financial Reporting by Government Departments’ paragraphs 6.3.11 and 6.3.12.

(b)‘Administered items’ are those that the entity does not control and which are subject to highly prescriptive rules or conditions established by legislation, or Australian Government Policy, in order to achieve Australian Government outcomes.

2B.5 Specific reporting requirements apply in relation to trust moneys (refer to Policy 3C of this Schedule).

2B.6 Approval for classifications of new items and reclassifications of existing items is to be obtained from the Finance Minister or a person authorised by the Finance Minister.

2C Disclosures of Appropriations

Policy
2C.1 Entities must make the disclosures in tabular form in the notes to the financial statements required by this Policy for all appropriations.

Table A: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations^{1, 14}

Particulars	Administered Expenses				Departmental Outputs		Total
Outcome 1		Outcome …'n'
2006	2005	2006	2005	2006	2005		2006		2005
$	$	$	$	$	$	$		$
Balance carried from previous period
Reductions of appropriations (prior years)²
Adjusted balance carried from previous period [A]
Appropriation Act (No.1) ³
Appropriation Act (No.3) ⁴
Departmental adjustments by the Finance Minister (Appropriation Acts)⁵
Comcover receipts (Appropriation Act s13)
Advance to the Finance Minister⁶
Adjustment of appropriations on change of entity function (FMA s 32)
Refunds credited (FMA s 30)
Appropriation reduced by section 9 determinations (current year)⁷
Sub-total Annual Appropriation[B]
Appropriations to take account of recoverable GST (FMA s 30A)⁸ [C]
Annotations to ‘net appropriations’ (FMA s 31) [D]
Total appropriation available for payments [A+B+C+D]
Cash payments made during the year (GST inclusive) [E]
Appropriations credited to Special Accounts (excluding GST) [F]
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations¹³ [A+B+C+D+E+F]
Represented by:
Cash at bank and on hand
Departmental appropriations receivable*^{1, 9}
GST receivable from the ATO*¹
Departmental appropriations receivable – drawing rights withheld by the Finance Minister (FMA s27(4))^{*1, 9}
Formal reductions of appropriation*^1, ¹⁰
Departmental appropriation receivable (appropriation for additional outputs)*^{1, 11}
Undrawn, unlapsed administered appropriations
Total

The amounts recorded in this table are primarily on a cash basis. However where indicated by an asterisk (*) the amount recorded should be an accrual amount.1

2Entities must distinguish between “reductions for prior years” through section 8 and 9 determinations relating to previous years, and “appropriation that was reduced by a section 9 determination for the current year”, and disclose the former here. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (e.g. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).

3As per Appropriation Act (No.1) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.

This item must be as per Appropriation Act (No.3) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.2) 2005-2006.4

Section 11 Appropriation Acts (No.1) and (No.3) 2005-2006 or section 13 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.5

6Section 12 Appropriation Acts (No.1) and (No.3) 2005-2006 or section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.

7This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 3 determinations by the Finance Minister before 30 June.

8The amount recorded will be the amounts of GST appropriated during the reporting period (i.e. cash paid basis), but will need to exclude GST appropriated for payments to Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.

9Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.

10Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.15 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.

This item must equal the amount of appropriation promised to an entity to provide additional outputs in the current year with appropriation to be provided in the following year.11

12If an entity prefers, the comparative year information may be shown to the right of the current year columns. If this approach is taken, the more extensive current year disclosure requirements must be used for both years.

This table refers to the long title of Appropriation Acts 1 and 3, which is “An Act to appropriate money out of the Consolidated Revenue Fund for the ordinary annual services of the Government, and for related purposes”. This table includes Appropriation (Parliamentary Departments) (No. 1) Act.13

14The “Represented by” lines in Table A and related footnotes 9-11 are intended to report a reconciliation between the balance of each appropriation legally available as at 30 June each year and the balances of cash and appropriations receivables for departmental items and the balance of cash in an agency’s administered bank accounts for administered items. Entities should report any other reconciling items if applicable.

Table B: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations^{1, 15}

Particulars

Operating

Non – operating

Total

Outcome 1

Outcome…'n'

SPPs2

NAE³

SPPs2

NAE³

Equity

Loans

Previous Years’ Outputs

Admin assets and liabilities

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

2006

2005

Balance carried from previous period

Reduction of appropriations (prior years) ⁴

Adjusted balance carried from previous period [A]

Appropriation Act (No.2) ⁵

Appropriation Act (No.4) ⁶

Departmental Adjustments and Borrowings⁷

Advance to the Finance Minister ⁸

Adjustment of appropriations on change of entity function (FMA s32)

Refunds credited (FMA s30)

Appropriation reduced by a section 11 determination (current year) ¹¹

Sub-total Annual Appropriation [B]

Appropriations to take account of recoverable GST (FMA s30A)⁹[C]

Total appropriations available for payments [A+B+C]

Cash payments made during the year (GST inclusive) [D]

Appropriations credited to Special Accounts (GST exclusive) [E]

Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Other Than Ordinary Annual Services Appropriations¹⁵ [A+B+C+D+E]

Represented by:

Cash at bank and on hand

Appropriation receivable*^1, 11

GST receivable from the ATO*¹

Departmental appropriation receivable – Drawing rights withheld by the Finance Minister (FMA s27(4))^{*1, 11}

Formal reductions of appropriation revenue*1²

Departmental appropriation receivable (appropriation for additional outputs)*¹³

Undrawn, unlapsed administered appropriations

Total

The amounts recorded in this table are primarily on a cash basis. However, where indicated by an asterisk (*) the amount recorded should be an accrual amount.1

2State payment items (Specific Payments to the States and Territories) (refer Budget Papers).

3New Administered Expenses.

4For this item, entities must distinguish between “reductions for prior years” through section 7, 8 and 11 determinations made during the current year that relate to previous years, and “appropriation that was reduced by a section 11 determination for the current year”, and disclose the former. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (i.e. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).

5As per Appropriation Act (No.2) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.

6This item must be as per Appropriation Act (No.4) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) and (No. 2) 2005-2006.

7Section 12 Appropriation Act (No.2) and (No.4) 2005-2006 and section 13 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.

8Section 13 Appropriation Act (No.2) and (No.4) 2005-2006 and section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.

9The amount recorded will be the amounts of GST appropriated immediately before payments are made (i.e. cash paid basis), but will need to exclude GST appropriated for payments from Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.

10This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 4 determinations by the Finance Minister before 30 June.

11Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.

12Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.13 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.

13This item must equal the amount of appropriation promised to an entity to provide additional outputs in the current year with appropriation to be provided in the following year.

If an entity prefers, the comparative year information may be shown to the right of the current year columns. If this approach is taken, the more extensive current year disclosure requirements must be used for both years. 14

15To distinguish between appropriations in Table A, for Appropriation Act 1, 3 and Parliamentary Departments 1, this Table B refers to “Other than Ordinary Annual Services Appropriations”. (Refer to note 13, Table A of this Policy.)

Table C: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)^{1, 2, 3}

Particulars of legislation providing appropriation (including purpose) 2006 2005

Cash payments made during the year⁴

Appropriations credited to Special Accounts

Refunds credited (net) (FMA s 30)

Total charged to appropriation

Estimated actual⁵

1 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:

(a) identify whether the special appropriation is administered or departmental; and

(b) disclose the outcome it is associated with.

2 Entities must disclose all unlimited special appropriations in this format, excluding those unlimited special appropriations required to be disclosed under Tables D and E of this Policy.

3 For cross-referencing purposes, where an entity makes disclosures under this Table, and at least one other entity has drawn from the same special appropriation, the entity making disclosures under this Table must name those other entities by making the following statement: “(Other entity/entities) also drew from (special appropriation provision/s).”

4 This item must reflect total cash payments made under the special appropriation by the entity during the year.

5 Entities must disclose their Portfolio Budget Statement estimated actual as reported in their 2006-07 budget papers. Cash payments are not legally limited to Budget estimates.

Table D: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)^{1, 2}

Particulars of legislation providing appropriation³
2006 2005

Cash payments made during the year⁴

Appropriations credited to Special Accounts

Refunds received (net) (FMA s30)

Total charged to special appropriation

Budget estimate⁵ (list each other legislative provision that refunds have been made under)

Budget estimate⁵ (FMA s28)

1 Where an Agency has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid, that entity may make the following statement in the notes to their financial statements, in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid.”

2 If the Agency has made repayments using section 28 of the FMA Act or any other legislative provision for repayments required or permitted under law, the entity must disclose the aggregate of all those transactions in this table.

3 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:

(a) identify whether the special appropriation is administered or departmental; and

(b) disclose the outcome it is associated with.

4 This item must reflect the total refunds made by the Agency during the year (including s28 refunds if applicable).

5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Cash payments are not legally limited to Budget estimates.

Table E: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (section 39 of the FMA Act)¹

Investment of Public Money:
Special Appropriations under section 39 of the FMA Act² 2006 2005

Amount invested carried from previous period

Prior year investments redeemed in current year³

Investments made during the year^{3, 4}

Redemptions of current year investments⁴

Amount invested carried to the next period (sum of the above)

Budget estimate⁵

1 Where an Agency has a delegation but has not used section 39 of the FMA Act, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 39 of the FMA Act.”

2 In the heading to the table:

(a) identify whether the special appropriation is administered or departmental; and

(b) disclose the outcome it is associated with.

3 Where a section 39 investment has earnt interest, and that interest is redeemed and reinvested, Agencies must include the amount of interest in this item, and state that this amount includes interest and the amount of interest that is included.

4 This is the gross amount.

5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Payments are not legally limited to Budget estimates.

Table F: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriation (Limited Amount)^{1, 2, 3}

Particulars of legislation providing appropriation (including purpose) 2006 2005

Appropriation by type Appropriation by type

Amount available carried from previous period

Appropriation for reporting period

Appropriations to take account of recoverable GST (FMA s30A)⁴

Available for payments

Cash payments made during the year (GST inclusive)

Appropriations credited to Special Accounts

Appropriations lapsed⁷

Amount available carried to the next period

Represented by:

Cash

Departmental appropriation receivable*^5,6,

Undrawn, unlapsed administered appropriations

Departmental appropriation receivable – drawing rights withheld by the Finance Minister (FMA s27(4))*^5,6

Total

1 Prepare a separate table for each Act, as current at reporting date. In the heading to the table:

(a) identify whether the special appropriation is administered or departmental; and

(b) disclose the outcomes it is associated with.

If a departmental special appropriation includes both outputs and capital funding, please provide separate columns for each type.

2 For cross-referencing purposes, where an entity makes disclosures under this Table, and at least one other entity has drawn from the same special appropriation, the entity making disclosures under this Table must name those other entities by making the following statement: “(Other entity/entities) also drew from (special appropriation provision/s).”

3 Agencies must disclose the amount of limited special appropriations that under the terms of the appropriation lapse due to the passage of time.

4 The amount recorded for this item will be the amounts of GST appropriated immediately before payments are made (i.e. cash paid basis), but will need to exclude GST appropriated for payments from Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.

5 The amounts recorded in this table are primarily on a cash basis. However, where indicated by an asterisk (*) the amount recorded should be an accrual amount.

6 Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.

7 Lapsed for time, or any other, constraints contained within the provisions of the special appropriations enabling legislation. In this instance, there remains an unspent appropriation that is no longer available. This amount should reduce the ‘Amount available carried to the next period’.

Table G: Disclosure by agent in relation to special appropriations

Name of legislation providing the appropriation Responsible Agency 1 Responsible Agency 2…‘n’ Total

Departmental Administered Departmental Administered Departmental Administered

Total receipts

Total payments

Balance

2C.2 The disclosures required by this Policy for appropriations, including special appropriations, are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.

2C.3 For special appropriations, a table must be prepared for each Act.

2C.4 For special appropriations, where an appropriation has not been drawn on in the current and the previous year, in place of completing the tables above, an entity may elect to make an abbreviated disclosure that includes all of the following:

(a)whether the special appropriation is administered or departmental;

(b) the legislative provision that provides the authority for the special appropriation;

(c) the outcomes it is associated with;

(d) the fact that the special appropriation was not drawn on in the current or previous year; and

(e) for limited special appropriations, the balance available.

2C.5 Where there are material variances between the cash payments for the reporting period and the amount appropriated, otherwise authorised or estimated through Budget Estimates, entities should provide an explanation of those variances below the relevant Table.

2C.6 This Policy applies to both departmental and administered items.

Appropriation for refunds required or permitted by law

2C.7 Each Agency must ensure they have a valid appropriation for all amounts drawn from the Consolidated Revenue Fund for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, should be recognised and/or disclosed under their valid appropriation, and as required by Table D of this Policy.

Investment of public money

2C.8 Each entity must recognise and/or disclose all public money invested in authorised investments under section 39 of the FMA Act or surplus funds under sections 18 and 19 of the CAC Act in Table E of this Policy. All money invested under a special account must also be disclosed in accordance with Policy 2E of this Schedule.

2D Reporting of Outcomes and Outputs

Policy
2D.1 Entities in the General Government Sector must disclose in the notes the following tables relating to outcomes and outputs:

Table A: Net Cost of Outcome Delivery

Outcome 1¹ Outcome …n¹ Total²

2006 2005 2006 2005 2006 2005

Expenses

Administered

Departmental

Total expenses

Costs recovered³

Administered

Departmental

Total costs recovered

Other external income⁴

Administered

Departmental

Total other external income

Net cost/(contribution) of outcome

1)Outcomes are to be as specified in the Appropriation Acts relevant to the entity.

2)The amounts in the total column for departmental items must agree to the entity’s Statement of Financial Performance and the amounts in the total column for administered items must agree to the entity’s totals in the Schedule of Administered Items.

3) Cost recoveries are defined in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies, Department of Finance and Administration, and in Definition of Terms of this Schedule.

4) Entities should disclose the nature of these external revenues by major class. Where these include intra- or inter- government charges, such charges should be shown separately.

Table B: Major Departmental Income and Expenses by Output Groups and Outputs

Outcome 1^#1 Output Group 1.1n Outcome

Output 1…n Group Total Total

2006 2005 2006 2005 2006 2005

Departmental expenses

Show each relevant major class

Total departmental expenses

Funded by:

Show each relevant major class of income

Total departmental income

#1 Entities should prepare a separate Table B for each Outcome, with outcomes as specified in the Appropriation Acts relevant to the entity.

Paragraph 12.7 of AAS 29 Financial Reporting by Government Departments requires disclosure of revenues and expenses by ‘major activity’, which includes outputs.

Table C: Major Classes of Administered Income and Expenses by Outcome¹

Outcome 1² Outcome…’n’² Total³

2006 2005 2006 2005 2006 2005

Income

Show each relevant major class

Expenses

Show each relevant major class

1) Paragraph 12.9 of AAS 29 Financial Reporting by Government Departments requires disclosure of administered revenues and expenses by ‘major activity’.

2) Outcomes are to be as specified in the Appropriation Acts relevant to the entity.

3) The amounts in the total column for administered items must agree to the entity’s totals in the Schedule of Administered Items.

2D.2 Entities must state, in footnotes to these Tables, whether the net costs shown include intra-government costs (e.g. rent paid on Australian Government owned premises or fees for service) that would be eliminated in calculating the actual Budget outcome.

2D.3 Entities preparing these tables must attribute shared items using a basis that most accurately allocates the total cost or income to each output or outcome. If this basis differs from that used in preparing the Budget, additional disclosure must be included to explain the variation.

2D.4 Where an output or outcome changes during the year, entities must:

(a) match the changed output or outcome to accord with the adjusted output or outcome arrangements approved through the portfolio additional estimates process and published in an Appropriation Act; and

(b) apportion the amounts disclosed between the new and former outputs or outcomes, based on the date that the Appropriation Act notifying the change received Royal Assent, so that entities report against the original outputs or outcomes up to the date of the change and against the revised outputs or outcomes after that date.

2D.5 The attribution method used to apportion shared items must be reliable and must be disclosed in the text accompanying the tables (see AAS 29 paragraph 12.7).

2D.6 This Policy applies to both departmental and administered items.

2D.7 The amounts disclosed must be net of refunds and adjustments.

2E Special Accounts

Policy
2E.1 Agencies must:

(a) prepare a separate table for each Special Account used during the current year or comparative year; or

(b) apply Clause 2E.3 of this Policy where the Special Accounts have not been used during the current year and comparative year; and

(c) disclose the table/s or disclosure as required by Clause 2E.3 of this Policy, in the notes to the financial statements.

Table A: Special Accounts

Special Account information (eg account name)^{1, 2} 2006 2005

Balance carried from previous period *

Appropriation for reporting period³

Costs recovered

GST credits (FMA s30A)

Realised investments

Other receipts (Show each major class)⁴

Total Credits

Available for payments

Payments made (Show each major class) ⁴

Repayments debited from the Special Account (s 28)

Investments debited from the special account (FMA s39)

Total Debits

Balance carried to the next period * (excluding investment balances – refer Table B)

Represented by:

Cash – transferred to the Official Public Account

Cash – held by the entity

Total balance carried to the next period

* Special Accounts may not have a debit balance at any point.

1) In the heading information, entities should also indicate:

(a) whether the account is administered, departmental or Special Public Money in nature;

(b) the purpose of the Special Account; and

(c) the authority under which the Special Account was established.

[Note: Where a Special Account was established by other Acts, the enabling legislation should also be disclosed.]
2) Where a Special Account’s status has changed during the year (e.g. established, varied, revoked or abolished), the nature and date of effect of each change should be included in the heading information. Where the nature of these changes are significant, consideration should be given as to whether two disclosure tables should be prepared for the “before” and “after” periods.

3) Each current year Appropriation Act should be reported on a separate line in the table and the total amount transferred and reported should agree with the Special Accounts disclosures as required by Policy 2C of this Schedule.

4) Major classes are as per the primary statements in Appendix A of this Schedule. Where legislation directly credits a Special Account with amounts, this table should include a line ‘Amounts credited under the (full name of) Act’. Where interest is credited to a Special Account, this table should include a line ‘Interest amounts credited’.

Table B: Special Accounts Investment of Public Money ^{1, 2, 3}

Full official title of Special Account: Investment of Public Money under section 39 of the FMA Act 2006 2005

Opening balance

Investments made

Interest earned

Transaction charges

Investments realised

Closing Balance

1 If a delegation has been made under section 39 of the FMA Act to the CEO of the Agency in respect of the Special Account, and that delegation has been used, the Agency must disclose the aggregate of all those transactions in this table.

2 Where an Agency has not used section 39 of the FMA Act in respect of the Special Account, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Agency) has not used section 39 of the FMA Act in respect of this Special Account.”

3 This Table must reflect investments made under section 39 of the FMA Act by the Agency in respect of this Special Account.

2E.2 Agencies that invest amounts standing to the credit of a special account, using a valid delegation of FMA Act section 39 investment powers, should disclose the net amount invested during the year in the text accompanying the Special Account table(s).

2E.3 Special Accounts which have not been used during the current year and comparative year, regardless of whether they have a nil or positive balance, may make the following disclosure instead of preparing the table at Clause 2E.1 of this Policy:

(a) the Special Account’s title;

(b) whether the account is administered, departmental or Special Public Money in nature;

(c) the purpose of the Special Account;

(d) the authority under which the Special Account was established;

(e) a statement noting the Special Account has not been used during the current year and comparative year; and

(f) the Special Account’s balance.

2E.4 Disclosures required by this Policy are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.

2E.5 This Policy applies to both departmental and administered items.

CHAPTER 3 ASSETS

3A Non-Financial Assets (previously Internal Use Software/Non-Current Assets/Impairment of Non-Financial Assets/Analysis of Property, Plant and Equipment and Intangibles)

Policy
Non-Financial Assets
3A.1 Subject to 3A.7, entities must revalue every class of assets that include assets of the types listed below, on the fair value basis ie the revaluation method under AASB 116 Property, Plant and Equipment, or the fair value model under AASB 140 Investment Property, as appropriate:

(a)land;

(b)land and buildings;

(c)infrastructure, plant and equipment;

(d)heritage and cultural assets; and

(e)investment properties.

3A.2 In the absence of an active market the cost basis must be applied to intangible assets. Intangibles shall be carried at fair value where an active market exists.

3A.3 The cost basis must be applied to Specialist Military Equipment, subject to satisfactory compliance with the transitional provisions of AASB 1.

3A.4 Revaluations must be made with sufficient regularity to ensure that the carrying amount of assets does not differ materially from fair value as at reporting date. The frequency of valuations will depend on the significance and volatility in changes to the fair value of the relevant assets.

3A.5 Non-financial assets may be revalued progressively.

3A.6 This Policy applies to both entity and administered assets.

3A.7 A for-profit entity or an Authority that is a university may elect not to apply the requirements at Policies 3A.1 to 3A.5.

Impairment of Non Financial Assets

3A.8 Entities, or parts of entities, other than those whose predominant purpose is to generate net cash inflows, are not cash-generating units for the purpose of AASB 136 Impairment of Assets.

Analysis of Property, Plant and Equipment, and Intangibles

3A.9 Notes to the financial statements must include the following listed tables, where applicable, in accordance with Appendix A:

Table A:Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment;

Table B: Property, Plant and Equipment Held under Finance Lease;

Table C: Property, Plant and Equipment under Construction;

Table D: Reconciliation of the Opening and Closing Balances of Investment Property;

Table E: Reconciliation of the Opening and Closing Balances of Intangibles; and

Table F: Intangibles under Construction.

Borrowing Costs
3A.10 Borrowing costs are to be expensed as incurred. The Alternative Treatment allowed under AASB 123 is not to be adopted.

3B Restricted Assets

Policy
3B.1 Where the use of an asset that is recognised in the Balance Sheet and/or Schedule of Administered Items is restricted, wholly or in part of, by regulations or other externally-imposed requirements, and information about those restrictions is relevant to assessing the performance or financial position of the entity, the following must be disclosed:

(a) the identity and carrying amount of the assets; and

(b) the nature of the restrictions.

3B.2 Where the use or holding of an asset is subject to restrictions, the fair value ascribed to that asset should reflect those restrictions.

3B.3 This Policy applies to both entity and administered assets.

3C Assets Held in Trust

Policy
3C.1 The financial statements of entities must include a note giving particulars of assets, cash and non-cash, held in trust but not controlled by the entity nor managed on behalf of the Australian Government.

3C.2 A summary of the categories of assets held at the end of the reporting period and the purpose for which they are being held must be disclosed for assets referred to in Clause 3C.1.

3C.3 In relation to cash assets, there must be disclosed, for each significant category, the:

(a)total amount held at the beginning of the reporting period;

(b)total receipts during the reporting period;

(c)total payments during the reporting period; and

(d)total amount held at the end of the reporting period:

(i) by the entity; and

(ii) in the Official Public Account.

3C.4 In relation to non-cash assets, there must be disclosed, for each significant category:

(a)a short description of each category;

(b)the value of assets acquired or disposed of during the reporting period; and

(c)the value of assets at the end of the reporting period.

3D Heritage And Cultural Assets

Policy
3D.1 Heritage and cultural items should only be recognised as assets where they meet the asset definition and recognition criteria set out in the AASB Framework for Preparation and Presentation of Financial Statements (Framework).

3D.2 Heritage and cultural assets should be depreciated over the period they will be held and used. Heritage and cultural assets should not be depreciated if there is no foreseeable limit to the period over which they are held and used.

3D.3 When an entity controls or administers heritage and cultural items that are not recognised as assets, the notes to the financial statements must disclose:

(a)a description of those items;

(b)the reason for non-recognition of those items;

(c)the amount expended to acquire such items during the financial year; and

(d)the amount of proceeds from the disposal of such items during the financial year.

3D.4 This Policy also applies to those components of assets that have heritage or cultural value, where these can be separately identified from, and are material in relation to, the asset as a whole.

3D.5 This Policy applies to both entity and administered items where applicable.

CHAPTER 4 LIABILITIES

4A Contingent Liabilities and Contingent Assets

Policy
4A.1 Contingent liabilities and contingent assets that can be reliably measured must be included in the Schedule of Contingencies, in accordance with Appendix A of this Schedule, except where the probability of a liability or asset being recognised in the future is remote. Equivalent disclosure for administered contingent liabilities and contingent assets must be included in the Schedule of Administered Items.

4A.2 Contingent liabilities and contingent assets must be classified in accordance with the categories in the Schedule of Contingencies. Material remote contingent liabilities and contingent assets must be explained in a note to the financial statements that includes the information referred to in paragraphs 86 and 89 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

4A.3 The reference in paragraph 92 of AASB 137 to ‘entity’ must be read as ‘the entity, another Australian Government entity or the Australian Government as a whole’.

4B Commitments

Policy
4B.1 Commitments are:

(a)intentions to create liabilities, as evidenced by undertakings or agreements to make future payments to other entities; and

(b)unrecognised liabilities that are obligations contained in a contract, agreement or undertaking that are equally proportionately unperformed, except where the obligation is an onerous contract as defined in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

4B.2 The nature, and where quantifiable the amount, of each category of commitments must be disclosed in a Schedule of Commitments in accordance with the tables in Appendix A. Equivalent disclosure for administered commitments must be included in the Schedule of Administered Items.

4B.3 Commitments may be capital, non-capital, payable or receivable.

4B.4 The provisions of this Policy apply to both entity and administered items.

4C Employee Entitlements (New Policy)

Policy
4C.1 This Policy is based on the requirements of AASB 119 Employee Benefits as issued in December 2004. All entities are required to early adopt this version of AASB 119 Employee Benefits.

4C.2 Entities must identify any annual leave that is not expected to be consumed within twelve months after the end of the period in which the employees render the related service and ensure it is discounted in accordance with AASB 119.

4C.3 Entities with less than 1,000 full-time equivalent employees (FTE) may continue to use the shorthand method when calculating long-service leave liability.

4C.4 Entities with more than 1,000 FTE are to undertake their own assessments to estimate the liability for long service leave. The method of doing this would be one of the following:

(a)if the entities employee profile is, demonstrably, not materially different than the Australian Government’s standard profile use the shorthand method;

(b)undertake an actuarial assessment ; or

(c)use a detailed calculation basis (eg. employee by employee).

4C.5 Public Finance Corporations (PFCs), Government Business Enterprises (GBEs) and Air Services Australia can apply any of the three recognition options for actuarial gains and losses for defined benefit plans. All other entities are to apply the “direct to retained profit” option of recognising actuarial gains and losses for defined benefit plans. This is applicable to entity and administered items.

4C.6 Defined benefit post employment plans where the actuarial and investment risk falls to other parties are considered defined contribution plans. Whilst the CSS, PSS Defined Benefit Plans and MSBS are defined benefit plans at the whole-of-government level, agencies contributing to these schemes are to account for these contributions under AASB 119 as if they were defined contribution plans.

4C.7 Entities that have been advised by Finance that they will have an additional employer lump sum contribution should show a liability for this amount at balance date.

4C.8 The new PSS Accumulation Plan is considered a Defined Contribution Plan from the point of view of both agencies and at the whole-of-government level.

4C.9 Plans where the actuarial risk falls on the agency must be accounted for as defined benefit plans.

4C.10 The market yield on long-term government bonds must be referenced when determining a discount rate for discounting purposes.

CHAPTER 5 EQUITY

5A Restructure

Policy
5A.1 Where restructures have occurred during the reporting period, the financial statements of entities must include a note giving particulars of the restructure.

5A.2 Non-reciprocal transfers of assets and liabilities resulting from a restructure between:

(a) wholly owned Australian Government entities; or

(b) departmental and administered classifications

due to:

(i) an Australian Government decision;

(ii) an Administrative Arrangements Order (AAO);

(iii) an Act of Parliament or a Regulation under an Act; or

(v)a Written Agreement between the relevant Portfolio Minister(s) and the Finance Minister or the Prime Minister, as appropriate;

are to be treated as contributions by, or distributions to, owners and must be recognised as direct adjustments to ‘Equity’ (Restructuring) at their net book value (less any token consideration) immediately prior to transfer. For the purposes of UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities, Clauses 5A.2(b)(i) to (iv) of this Policy are formal designations of transfers as contributions by or distributions to owners.

5A.3 Paragraphs 7.4, 10.6 – 10. 9 of AAS 29 Financial Reporting by Government Departments apply to all Australian Government agencies.

SCHEDULE OF CONTINGENCIES for Not-For-Profit Reporting Entities

as at______________

Contingent Liabilities

Guarantees

Indemnities

Uncalled shares or capital subscriptions

Claims for damages or costs

Warranties

Letters of Comfort

TOTAL

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

Balance from previous period

New

Re-measurement

Liabilities crystallised

Obligations expired

Total Contingent Liabilities

Contingent Assets

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

Balance from previous period

New

Re-measurement

Assets crystallised

Expired

Total Contingent Assets

Net Contingent Liabilities

Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note [specify number]

Not-For-Profit Reporting Entities - Note Disclosure

2006 2005

Income

Revenue

Revenue from Government

Appropriations:

Departmental Outputs

Departmental Special Appropriations

Goods and services

Provision of goods – related entities

Provision of goods – external entities

Rendering of services – related entities

Rendering of services – external entities

Immigration fees

License fees

Operating lease rental

Other goods and services

Interest

Loans

Leases

Deposits

Bills Receivable

Investments (section 39 FMA Act)

Dividends

International financial institutions

Subsidiary companies

Associated companies

Other companies

Rents

(provide details)

Royalties

(provide details)

Other revenue

(provide details)

Gains
Net foreign exchange gains

Speculative

Non-speculative

Reversal of previous asset write-downs

Assets revaluation increments

Reversal of impairment losses

Net gain from sale of assets

Receivables

Investments

Land and buildings

Heritage and cultural assets

Infrastructure, plant and equipment

Intangibles

Other net gain from sale of assets

Other gains

Gains from remeasuring financial instruments held at fair value through profit and loss

Resources received free of charge

Not-For-Profit Reporting Entities - Note Disclosure
Expenses 2006 2005
Employees

Wages and Salaries

Superannuation

Leave and other entitlements

Separations and redundancies

Workers compensation premiums and claims

Other Employee expenses

Note: Separation and redundancy payments must exclude any benefits that would have been accrued and payable if redundancy had not occurred (e.g. accrued leave entitlements and lump sum superannuation payments).

Suppliers

Provision of goods – related entities

Provision of goods – external entities

Rendering of services – related parties

Rendering of services – external parties

Operating lease rentals

Other

Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.

Grants

State and Territory Governments

Local Governments

Private sector

Overseas

Related entities

Depreciation and amortisation

Depreciation

Other infrastructure, plant and equipment

Specialist military equipment

Buildings

Amortisation

Assets held under finance leases

Intangibles

Computer software

Other

Finance Costs

Loans

Leases

Overdrafts

Other finance costs

Write-down and impairment of assets

Inventory

Impairment of Financial Assets (specify each class)

Impairment of Non-Financial Assets

Revaluation decrements Non-financial Assets

Net foreign exchange losses

Speculative

Non-speculative

Net losses from sale of assets

Receivables

Investments

Land and buildings

Heritage and cultural assets

Infrastructure, plant and equipment

Intangibles

Other net losses from sale of assets

Other losses

Losses from remeasuring financial instruments held at fair value through profit and loss

Guarantees, undertakings and indemnities

Not-For-Profit Reporting Entities - Note Disclosure

2006 2005

Assets

Cash and Cash Equivalents

Special Accounts

Trust Accounts

Deposits made under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act

Other cash

Receivables

Goods and services

Appropriations

Loans

Bills of exchange and promissory notes

Interest

Dividends

Other receivables

(Maturity schedule must be included for total receivables showing amounts aged as follows:

Not overdue

Overdue by:

Less than 30 days

30 to 60 days

61 to 90 days

more than 90 days.)

Investments Accounted for under the Equity Method

Investments in associates

Investments in joint ventures

Investments under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act (Non-cash)

Securities of Australian Government, State and Territories

Securities guaranteed by Australian Government, State and Territories

Prescribed by the FMA regulations

Debt instruments

Other investments

Other Investments

Gold

Government securities

Shares

Subsidiary companies

Other companies

Debentures

Other investments

Tax Assets

Provide details

Accrued Revenue

Provide details

Other Financial Assets

Prepayments paid

Other financial assets

Land and Buildings

Land

Buildings (not integral to infrastructure)

Infrastructure Plant and Equipment

Infrastructure, plant and equipment (disclosed by class)

Specialist military equipment

Other infrastructure, plant and equipment

Heritage and Cultural Assets

Provide details

Investment Property

Provide details

Inventories

Inventories held for sale

Inventories held for distribution

Not-For-Profit Reporting Entities - Note Disclosure

2006 2005

Intangibles

Patents, trademarks, brand names and licences

Computer software

Purchased

Internally developed

Intangibles under development

Goodwill

Other intangibles

Biological Assets

Provide details

Other Non-Financial Assets

Prepayments paid

Other non-financial assets

Assets held for sale

Provide details

Liabilities

Payables

Suppliers

Trade creditors

Operating lease rentals

Grants

Overseas

Public Sector

Private sector not for-profit entities

Private sector for-profit entities

Other payables

Interest payable

Dividends

Prepayments received

Interest Bearing Liabilities

Loans

Bank loans

Non-bank loans

Bills of exchange and promissory notes

Other loans

Maturity schedule must be included for total loans showing amounts payable within:

One year or less

From one to five years

More than five years

Leases

Maturity schedule must be included for total leases showing amounts payable within:

One year or less

From one to five years

More than five years

Other interest bearing liabilities

Provisions

Employees

Salaries and wages

Leave

Superannuation

Workers’ compensation

Separations and redundancies

Other provisions

Not-For-Profit Reporting Entities - Note Disclosure
Table 3A.9 A:     Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment.

Item

Land

($’000)

Investment property

($’000)

Buildings

($’000)

Specialist military equipment

($’000)

Other infra-structure,
plant and equipment

($’000)

Heritage and cultural assets

($’000)

As at 1 July (previous year)

Gross book value

Accumulated depreciation

Opening Net book value

Additions:

by purchase

by finance lease

Internally developed

from acquisitions of entities or   operations (including restructuring)

Revaluations and impairments through equity

Reclassifications

Depreciation/amortisation

Impairments recognised in the operating result

Other movements (give details below)

Disposals:

from disposal of entities or operations (including restructuring)

other disposals

As at 30 June (current year)

Gross Book Value

Accumulated depreciation

Closing Net Book Value

Table 3A.9 B:     Property, Plant and Equipment Held under Finance Lease.

Item

Land

($’000)

Investment property

($’000)

Buildings

($’000)

Specialist military equipment

($’000)
Other infra-structure, plant and equipment
($’000)
Heritage and cultural assets

($’000)

As at 30 June (current year)

Gross value

Accumulated deprecation/amortisation

Closing Net book value

As at 30 June (previous year)

Gross value

Accumulated deprecation/amortisation

Closing Net book value

Not-For-Profit Reporting Entities - Note Disclosure
Table 3A.9 C:     Property, Plant and Equipment under Construction.

Item
Buildings
($’000) Specialist military equipment
($’000) Other infra-structure, plant and equipment
($’000)

Carrying amount at 30 June (current year)

Carrying amount at 30 June (previous year)

Table 3A.9 D:     Reconciliation of the Opening and Closing Balances of Investment Property

Item
2005
($’000) 2006
($’000)

As at 1 July (previous year)

Additions:

by acquisition

by subsequent expenditure

Disposals and property held for sale

Net gain (loss) from fair value adjustments

Net foreign currency exchange differences

Transfers

Other changes

As at 30 June (current year)

Table 3A.9 E:      Reconciliation of the Opening and Closing Balances of Intangibles^1.

Item

Computer software internally developed

($’000)

Computer software purchased

($’000)

Other intangibles internally developed

($’000)

Other intangibles purchased

($’000)

As at 1 July (previous year)

Gross book value

Accumulated depreciation

Opening Net book value

Additions

from acquisitions of entities or   operations (including restructuring)

Reclassifications

Depreciation/amortisation

Impairments recognised in the operating result

Other movements (give details below)

Disposals:

from disposal of entities or operations (including restructuring)

other disposals

As at 30 June (current year)

Gross Book Value

Accumulated depreciation

Closing Net Book Value

1.    Entities may incorporate this table into the main asset table (Table 3A.9.A) where it is considered appropriate. Sufficient information and subtotal columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the Balance Sheet.
Not-For-Profit Reporting Entities - Note Disclosure
Table 3A.9 F: Intangibles under Construction¹.

Item

Computer software internally developed

($’000)

Computer software purchased

($’000)

Other intangibles internally developed

($’000)

Other intangibles purchased

($’000)

Carrying amount at 30 June (current year)

Carrying amount at 30 June (previous year)

1.    Entities may incorporate this table into Table 3A.9.C where it is considered appropriate. Sufficient information and subtotal columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the Balance Sheet.
Appendix A

Section 3: Administered Reporting

SCHEDULE OF ADMINISTERED ITEMS

2006 2005

Income Administered on Behalf of Government

for the period ended ___________________

Revenue
Taxation
Income tax (note x)

Indirect tax (note x)

Other taxes, fees and fines (note x)

Total Taxation

Non-Taxation
Goods and services (note x)

Interest (note x)

Dividends (note x)

Other sources of non-taxation revenues (note x)

Rents (note x)

Royalties (note x)

Total Non-Taxation

Total Revenues Administered on Behalf of Government
Gains
Net foreign exchange gains (note x)

Net gain from sale of assets (note x)

Other gains (note x)

Total Gains Administered on Behalf of Government
Total Income Administered on Behalf of Government
Expenses Administered on Behalf of Government
for the period ended _______________________
Grants (note x)

Subsidies (note x)

Personal benefits (note x)

Employees (note x)

Suppliers (note x)

Depreciation and amortisation (note x)

Write-down and impairment of assets (note x)

Interest (note x)

Other (note x)

Losses
Net foreign exchange losses (note x)

Net loss from sale of assets (note x)

Other losses (note x)

Total Expenses Administered on Behalf of Government
SCHEDULE OF ADMINISTERED ITEMS

2006 2005

Assets Administered on Behalf of Government
as at ___________________
Financial Assets
Cash and cash equivalents (note x)[Note this can include Investments including (section 39 FMA Act)

Receivables (note x)

Investments including section 39 FMA Act

Accrued revenues (note x)

Other financial assets (note x)

Total Financial Assets
Non-Financial Assets
Land and buildings (note x)

Infrastructure, plant and equipment (note x)

Heritage and cultural assets (note x)

Investment Properties (note x)

Inventories (note x)

Intangibles (note x)

Biological Assets (note x)

Other (note x)

Assets held for sale (note x)

Total Non-Financial Assets
Total Assets Administered on Behalf of the Government
Liabilities Administered on Behalf of Government
as at ___________________
Interest Bearing Liabilities
Australian Government Securities (note x)

Loans (note x)

Leases (note x)

Deposits (note x)

Overdraft

Other (note x)

Total Interest Bearing Liabilities
Provisions
Employees (note x)

Taxation refunds provided

Australian currency on issue

Other Provisions (note x)

Total Provisions
Payables
Suppliers (note x)

Grants and subsidies (note x)

Dividends

Borrowing Costs

Personal benefits payable

Taxation refunds due

Other payables (note x)

Total Payables
Liabilities included in disposal groups held for sale
Total Liabilities Administered on Behalf of the Government
SCHEDULE OF ADMINISTERED ITEMS

2006 2005

Administered Cash Flows
for the period ended _________
Operating Activities
Cash Received
Income tax

Indirect tax

Other taxes, fees and fines

Sales of goods

Rendering of services

Interest

Dividends

Net GST received

Other

Total Cash Received
Cash Used
Borrowing costs

Employees

Grant payments

Interest paid

Subsidies paid

Personal benefits

Suppliers

Net GST paid

Other

Total Cash Used
Net Cash from Operating Activities
Investing Activities

Cash Received

Proceeds from sales of property, plant and equipment and intangibles

Proceeds from sales of equity instruments

Proceeds from sales of investments

Repayments of advances

Transfers from other entities

Investments (section 39 FMA Act)

Other

Total Cash Received

Cash Used

Purchase of property, plant and equipment and intangibles

Purchase of equity instruments

Advances and loans made

Transfers to Other Entities

Investments (section 39 FMA Act)

Other

Total Cash Used
Net Cash from Investing Activities

SCHEDULE OF ADMINISTERED ITEMS

Administered Cash Flows continued 2006 2005

Financing Activities

Cash Received

Proceeds from borrowing

Cash from Official Public Account

Other

Total Cash Received

Cash Used

Net repayment of borrowings

Dividends paid

Cash to Official Public Account

Other

Total Cash Used
Net Cash from Financing Activities
Net Increase or (Decrease) in Cash Held
Cash at beginning of reporting period

Cash from Official Public Account for:

- Appropriations

- Special Accounts

Transfer from other entities (Finance – Whole Of Government)

Cash to Official Public Account for:

- Appropriations

- Special Accounts

Transfers to Other Entities (Finance – Whole Of Government)

Effect of exchange rate movements on cash at beginning of reporting period

Cash at End of Reporting Period

SCHEDULE OF ADMINISTERED ITEMS

Administered Commitments
as at _____________

By Type

2006

2005

Capital Commitments

Land and buildings

Infrastructure, plant and equipment

Intangibles

Investments

Other capital commitments

Total Capital Commitments

Other Commitments

Operating leases

Project commitments

Research and development

Other commitments

Total Other Commitments

Commitments Receivable

Net Commitments by Type

By Maturity

2006

2005

Capital Commitments

One year or less

From one to five years

Over five years

Total Capital Commitments

Operating Lease Commitments

One year or less

From one to five years

Over five years

Total Operating Lease Commitments

Other Commitments

One year or less

From one to five years

Over five years

Total Other Commitments

Net Commitments by Maturity

SCHEDULE OF ADMINISTERED ITEMS

Administered Contingencies
as at______________

Administered Contingent Liabilities

Guarantees

Indemnities

Uncalled shares or capital subscriptions

Claims for damages or costs

Warranties

Letters of Comfort

TOTAL

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

Balance from previous period

New

Re-measurement

Liabilities crystallised

Obligations expired

Total Contingent Liabilities

Administered Contingent Assets

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

Balance from previous period

New

Re-measurement

Assets crystallised

Expired

Total Contingent Assets

Net Contingent Liabilities

Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note (specify number)
ADMINISTERED – Note Disclosure

2006 2005

Income Administered on Behalf of Government[2]
[2] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.

Revenue

Taxation Revenue

Income Tax
Individuals and other withholding tax:

Gross income tax withholding

Gross other individuals

Medicare levy

Less Refunds

Total individuals and other withholding tax

External companies (including tax on realised capital gains)

Superannuation funds

Contributions and earnings (including tax on realised capital gains)
Surcharge

Total superannuation funds

Petroleum resource rent tax

Other

Indirect Tax
GST

Excise duty (includes petroleum products and crude oil)

Other excise

Total excise duty revenue

Customs duty

Other Taxes, Fees and Fines
Fringe benefits tax

Luxury car tax

Wine equalisation tax

Agricultural production taxes

Other taxes

Non –taxation revenue

Goods and Services
Provision of goods – related entities

Provision of goods – external entities

Rendering of services – related entities

Rendering of services – external entities

Corporations Law fees

Immigration fees

Licence fees

Operating lease rental

Other

ADMINISTERED – Note Disclosure

2006 2005

Interest
Loans

Overseas

State and Territory Governments

Local government

Australian Government Entities

Other loans

Leases

Deposits

Bills receivable

Other Interest

Dividends
International financial institutions

Australian Government Entities

Associated companies

Other companies

Other sources of non-taxation revenue
Industry contributions

Indexation of HECS loans

Other

Rents
Provide details

Royalties
Provide details

Gains

Net foreign exchange gains
Speculative

Non-speculative

Net gain from sales of assets
Receivables

Investments

Land and buildings

Infrastructure, plant and equipment

Heritage and cultural assets

Intangibles

Asset sales program (Finance)

Other gains
Gains from remeasuring financial instruments held at fair value through profit and loss

Assets now recognised

Other

ADMINISTERED – Note Disclosure

2006 2005

Expenses Administered on Behalf of Government[3]
[3] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.
Grants
State and Territory Governments

Local governments

Private sector

Overseas

Related entities

Subsidies
Payable to related entities

Personal Benefits
Direct

Indirect

Employees
Wages and salaries

Superannuation

Leave and other entitlements

Separations and redundancies

Workers compensation

Other employee expenses

Suppliers
Provision of goods – related entities

Provision of goods – external entities

Rendering of services – related parties

Rendering of services – external parties

Operating lease rentals

Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Depreciation and Amortisation
Depreciation

Other infrastructure, plant and equipment

Specialist military equipment

Buildings

Amortisation

Assets held under finance leases

Intangibles

Computer software

Other

Write Down and Impairment of Assets
Inventory

Impairment of Financial Assets (specify each class)

Impairment of Non-Financial Assets

Revaluation decrements Non-financial assets

ADMINISTERED – Note Disclosure

2006 2005

Interest
Australian Government Securities

Loans Leases

Deposits

Other Interest Payments

Taxation Overpayments

Other Expenses
Losses from derivative financial instruments

Guarantees, undertakings and indemnities met

Net Foreign Exchange Losses
Speculative

Non-speculative

Net Gain from sale of Assets
Receivables

Investments

Land and buildings

Infrastructure, plant and equipment

Heritage and cultural assets

Intangibles

Asset sales program (Finance)

Other losses
Losses from remeasuring financial instruments held at fair value through profit and loss

Other

ADMINISTERED – Note Disclosure

2006 2005

Assets Administered on Behalf of Government[4]
[4] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.

Financial Assets

Cash and Cash Equivalents
Special Accounts

Deposits under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act

Other

Official Public Account (Finance)

Receivables
Income tax

Sales tax

Excise duty

Customs duty

Goods and services tax

Other taxes, fees and fines

Recoveries of benefit payments

Advances

Loans

State and Territory

Local Governments

HECS

Other

Goods and services

Bills of exchange and promissory notes

Interest and Dividends

Other receivables

(Maturity schedule must be included for total receivables showing amounts aged as follows:

Not overdue

Overdue by:

Less than 30 days

30 to 60 days

61 to 90 days

more than 90 days.)

Investments
Gold holdings

Deposits

Government securities

Debentures

International money fund quota

Shares

Australian Government companies

Associated companies (equity method)

Other companies

Other investments (Non-cash) including section 39 FMA Act; sections 18 & 19 CAC Act

Securities of Australian Government, State and Territories

Securities guaranteed by Australian Government, State and Territories

Prescribed by the regulations

Debt instruments

Other

Other financial assets
Provide details

ADMINISTERED –Note Disclosure

2006 2005

Non–Financial Assets

Land and Buildings
Land

Buildings (not integral to infrastructure)

Infrastructure, Plant and Equipment
Infrastructure, plant and equipment

Specialist military equipment

Other Infrastructure, plant and equipment

Heritage and Cultural Assets
Heritage assets

Cultural assets

Investment Property
Provide details

Inventories
Inventories held for sale

Inventories held for distribution

Intangibles
Computer software

Other intangibles

Biological Assets
Provide details

Other Non-Financial Assets
Prepayments paid

Deferred expenditure

Future income tax benefit

Other non-financial assets

Liabilities Administered on Behalf of Government[5]
[5] Where there are material sub-categories within a particular line item, details, including amounts, of each sub-category should be disclosed.

Interest Bearing Liabilities

Australian Government Securities
Treasury bonds

Treasury notes

Treasury indexed bonds

Unamortised net premiums on borrowings

Other Australian Government Securities

Loans
Debentures and notes

Other loans

Bank loans

Non-bank loans

Bills of exchange and promissory notes

(Maturity schedule must be included for total loans showing amounts payable within:

One year or less;

From one to five years; and

More than five years.)

ADMINISTERED – Note Disclosure

2006 2005

Leases
Finance lease liabilities as at the reporting date are reconciled to the lease liability as follows:

One year or less

From one to five years

More than five years

Minimum lease payments

Less future finance charges

Deposits
Exchange settlements Funds

Drawing accounts held with the Reserve Bank of Australia

State governments

Moneys held in trust

Foreign governments

Other deposits

Other Interest Bearing Liabilities
Swap principal payable

Amounts outstanding under repurchase agreements

Finance lease incentives

Special reserve- International Monetary Fund special drawing rights

Inscribed stock – face value

Other interest bearing liabilities

Provisions

Employees
Salaries and wages

Leave and other entitlements

Superannuation

Separations and redundancies

Other Provisions
Prepayments received

Accrued expenses

Provision for interest on overpayment of taxes

Customs rebates

Restructuring

Payables

Suppliers
Trade creditors

Operating lease rentals

Other creditors

Grants and Subsidies
Public sector –

State and Territory Governments

Local Governments

Private sector –

Not For-Profit entities

For-Profit entities

Other Payables
Interest payable

Other payables

AAS	Australian Accounting Standards
AASB	Australian Accounting Standards Board
Active Market	A market where all the following conditions exist: (a) the items traded within the market are homogenous; (b) willing buyers and sellers can normally be found at any time; and (c) the prices are available to the public. (AASB 138 para. 8)
Administrative Arrangements Orders (AAOs)	The functions and activities of the Government are administered in accordance with AAOs, issued from time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio Minister.
AEIFRS	Australian Equivalents to International Financial Reporting Standards
Agency	An Agency is as defined in section 5 of the Financial Management and Accountability Act 1997.
Amortisation	The systematic allocation of the depreciable amount of an intangible asset over its useful life. (AASB 138 para. 8)
Resources Received Free of Charge	Includes any economic benefits which are received for no or nominal consideration.
Australian Government	All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.
Authority	A Commonwealth authority as defined in section 7 of the Commonwealth Authorities and Companies Act 1997.
Business Operations	Activity or activities within an Agency that have been determined to be a Business Operation pursuant to 6.2.1 of the Financial Management and Accountability Orders 2005. They generally produce goods and services to persons or other entities for market prices and are not ‘primarily’ funded by appropriations.
Carrying Amount	The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses. (AASB 116 para. 6)
Cash-Generating Unit	The smallest identifiable group of assets that generates cash inflows that is largely independent of the cash inflows from other assets or groups of assets. (AASB 5 Appendix A)
Charter of Budget Honesty	The Charter of Budget Honesty Act 1998 provides a legislative framework for the conduct and reporting of fiscal policy. Broadly the Charter (Schedule 1 of the Act) requires the Government’s fiscal strategy to be based on the principles of sound fiscal management. In addition, the Secretaries of the Department of Finance and Administration and the Department of the Treasury are to publicly release a pre-election fiscal and economic outlook report if a general election is called and cost any publicly announced polices submitted by the Government or Opposition if so requested.
Commonwealth	The legal entity of the Commonwealth of Australia, created by the Australian Constitution.
Consolidated Financial Statements (CFS)	The Australian Government’s Consolidated Financial Statements (CFS) is the annual, end-of-year financial report prepared under section 55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS31 Financial Reporting by Governments. The CFS shows the consolidated results for the Australian Government includes consolidated results for all controlled entities as well as disaggregated information on the various sectors of government (general government, public non-financial corporations and public financial corporations).
Contingent Assets	A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
Contingent Liability	(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or (b) a present obligation that arises from past events but is not recognised because: (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (ii) the amount of the obligation cannot be measured with sufficient reliability. (AASB 137 para. 10)
Cost	As defined in AASB 116, Property, Plant and Equipment, and amounts deemed as cost as permitted by AASB 1, First-time Adoption of Australian Equivalents to International Financial Reporting Standards, and other relevant standards.

Cost Recoveries	All costs recovered by the Australian Government for provision of goods and services to the private and non-government sectors. Cost recoveries do not include: intra-government charging, government business enterprises, competitively neutral commercial arrangements, taxes, loans, asset sales or other property related incomes, fines and penalties, one-off specific policy measures, industry-government partnerships or statutory marketing levies, fees and charges by courts and tribunals.
Costs to sell	The incremental costs directly attributable to the disposal of an asset (or disposal group) excluding finance costs and income tax expense. (AASB 5 Appendix A)
Depreciable Amount	The cost of an asset, or other amount substituted for cost, less its residual value (AASB 116 para. 6)
Depreciated Replacement Cost	The current cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. (AASB 136 para. 6)
Draw Down	An authorised transmission (draw down) of funds from the Official Public Account (OPA) to either the respective agency’s Official Administered Payments account or Official Departmental account.
Entity	As described in Clause 1B.1 of this document.
Entity Assets	In the Australian Government context, assets that are controlled by an entity, rather than merely administered on behalf of Government.
Fair Value	The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. (AASB 116 para. 6)
FinanceBriefs	These provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance.

Finance Lease	A lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred. (AASB 117 para. 4)
Financial Instrument	Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (AASB 132 para. 11)
Financial Statements	Include: (a) the statements, schedules and notes required by these Orders; and (b) any other certificates, reports and notes (other than the auditor’s report and annual report) attached to or intended to be read with the statements and notes required by (a); prepared in relation to: - the Agency or Authority; and - where the Agency or Authority is a parent entity—the economic entity comprising the Agency or Authority and its subsidiaries.
For-Profit Entities	Refer to Appendix A of this document.
General Government Sector (GGS)	The GGS is a Government Finance Statistics (GFS) concept for entities that fulfil the functions of government as their primary activity. The primary function of this sector is to provide public services, which are mainly non-market in nature, and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies.
Government Business Enterprises (GBE)	A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Act 1997.
Grants	Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. (AASB 120 para.3).
Heritage Buildings	Heritage buildings are those buildings, monuments or structures that are (or are likely to become) symbolic of government, public activities, historical significance or cultural association (eg. Australian Government buildings listed on the National Trust.)
Impairment Loss	The amount by which the carrying amount of an asset exceeds its recoverable amount. (AASB 116 para. 6)
Intangible Asset	An identifiable non-monetary asset without physical substance. (AASB 138 para. 8)
Market Buying Price	The amount for which an asset with similar service potential could be bought by a knowledgeable, willing buyer from a knowledgeable, willing seller in an arms-length transaction at current prices plus the buyer’s transaction costs. This equates to current market value plus the buyer’s transaction costs.
Market Selling Price	The price that a willing seller would accept from a knowledgeable, willing buyer for an asset in an arms-length transaction at current prices. This does not include transaction costs.
Net Selling Price	Refer to Appendix B of this document.
Not-For-Profit Entities	An entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent and each of the entities that it controls. (AASB 116 para. AUS 6.1)
Operating Lease	A lease other than a finance lease. (AASB 117 para. 4)
Personal Benefit Payments	Current transfers for the benefit of individuals or households (for example, child care and family tax benefits) that do not require any economic benefit to flow back to government.
Preservation	Work performed to maintain an item in its existing state.
Progressive Revaluation	Revaluation of assets within a class, conducted in a systematic manner over a number of years.
Recoverable Amount	Means the higher of an asset’s fair value less costs to sell and its value in use. (AASB 5 Appendix A)
Reproduction Cost	The cost of replicating an existing asset.
Reserves	Include: a) amounts set aside out of profits; or b) other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on revaluation of assets).
Revaluation	The act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses.
Surplus assets	Assets that are held for disposal, being those assets for which: a) an entity has entered into a binding sale agreement; or b) an entity’s management or governing body has approved a formal plan to dispose of the assets. (AASB 116 para. 6)
Useful Life	a) the period over which an asset is expected to be available for use by the entity; or b) the number of production or similar units that is expected to be obtained from the asset by the entity. (AASB 116 para. 6)
Value in Use	The present value of the future cash flows expected to be derived from an asset or cash-generating unit. In respect of not-for-profit entities, value in use is depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits. (AASB 136 para. 16)

*Particulars of legislation providing appropriation (including purpose)*	*2006*	*2005*
Cash payments made during the year⁴
Appropriations credited to Special Accounts
Refunds credited (net) (FMA s 30)
Total charged to appropriation
Estimated actual⁵

Particulars of legislation providing appropriation³	*2006*	*2005*
Cash payments made during the year⁴
Appropriations credited to Special Accounts
Refunds received (net) (FMA s30)
Total charged to special appropriation
Budget estimate⁵ (list each other legislative provision that refunds have been made under)
Budget estimate⁵ (FMA s28)

Investment of Public Money: Special Appropriations under section 39 of the FMA Act²	2006	2005
Amount invested carried from previous period
Prior year investments redeemed in current year³
Investments made during the year^{3, 4}
Redemptions of current year investments⁴
Amount invested carried to the next period (sum of the above)
Budget estimate⁵

Name of legislation providing the appropriation	Responsible Agency 1		Responsible Agency 2…‘n’		Total
	Departmental	Administered	Departmental	Administered	Departmental	Administered
Total receipts
Total payments
Balance

Outcome 1¹		Outcome …n¹		Total²
2006	2005	2006	2005	2006	2005
Expenses
Administered
Departmental
*Total expenses*
Costs recovered³
Administered
Departmental
*Total costs recovered*
Other external income⁴
Administered
Departmental
*Total other external income*
Net cost/(contribution) of outcome

Outcome 1^#1	Output Group 1.1n				Outcome
	Output 1…n		Group Total		Total
	2006	2005	2006	2005	2006	2005
Departmental expenses
Show each relevant major class
Total departmental expenses
Funded by:
Show each relevant major class of income
Total departmental income

Outcome 1²		Outcome…’n’²		Total³
2006	2005	2006	2005	2006	2005
Income
Show each relevant major class
Expenses
Show each relevant major class

Special Account information (eg account name)^{1, 2}	2006	2005
Balance carried from previous period *
Appropriation for reporting period³
Costs recovered
GST credits (FMA s30A)
Realised investments
Other receipts (Show each major class)⁴
Total Credits
Available for payments
Payments made (Show each major class) ⁴
Repayments debited from the Special Account (s 28)
Investments debited from the special account (FMA s39)
Total Debits
Balance carried to the next period * (excluding investment balances – refer Table B)
Represented by:
Cash – transferred to the Official Public Account
Cash – held by the entity
Total balance carried to the next period

Full official title of Special Account: Investment of Public Money under section 39 of the FMA Act	2006	2005
*Opening balance*
Investments made
Interest earned
Transaction charges
Investments realised
Closing Balance

Item	Land ($’000)	Investment property ($’000)	Buildings ($’000)	Specialist military equipment ($’000)	Other infra-structure, plant and equipment ($’000)	Heritage and cultural assets ($’000)
As at 1 July (previous year)
Gross book value
Accumulated depreciation
Opening Net book value
Additions:
by purchase
by finance lease
Internally developed
from acquisitions of entities or operations (including restructuring)
Revaluations and impairments through equity
Reclassifications
Depreciation/amortisation
Impairments recognised in the operating result
Other movements (give details below)
Disposals:
from disposal of entities or operations (including restructuring)
other disposals
As at 30 June (current year)
Gross Book Value
Accumulated depreciation
Closing Net Book Value

Item	Buildings ($’000)	Specialist military equipment ($’000)	Other infra-structure, plant and equipment ($’000)
Carrying amount at 30 June (current year)
Carrying amount at 30 June (previous year)

Item	2005 ($’000)	2006 ($’000)
As at 1 July (previous year)
Additions:
by acquisition
by subsequent expenditure
Disposals and property held for sale
Net gain (loss) from fair value adjustments
Net foreign currency exchange differences
Transfers
Other changes
As at 30 June (current year)

Item	Computer software internally developed ($’000)	Computer software purchased ($’000)	Other intangibles internally developed ($’000)	Other intangibles purchased ($’000)
As at 1 July (previous year)
Gross book value
Accumulated depreciation
Opening Net book value
Additions
from acquisitions of entities or operations (including restructuring)
Reclassifications
Depreciation/amortisation
Impairments recognised in the operating result
Other movements (give details below)
Disposals:
from disposal of entities or operations (including restructuring)
other disposals
As at 30 June (current year)
Gross Book Value
Accumulated depreciation
Closing Net Book Value

By Type	2006	2005
Capital Commitments
Land and buildings
Infrastructure, plant and equipment
Intangibles
Investments
Other capital commitments
*Total Capital Commitments*
Other Commitments
Operating leases
Project commitments
Research and development
Other commitments
*Total Other Commitments*
Commitments Receivable
Net Commitments by Type
By Maturity	2006	2005
Capital Commitments
One year or less
From one to five years
Over five years
Total Capital Commitments
Operating Lease Commitments
One year or less
From one to five years
Over five years
Total Operating Lease Commitments
Other Commitments
One year or less
From one to five years
Over five years
Total Other Commitments
Net Commitments by Maturity